SBI Special FD Scheme For Senior Citizens To End By September 30, Offers 100 Bps Higher Rates Over Public

India's largest public sector bank, State Bank of India (SBI) launched WECARE, a special fixed deposits scheme for senior citizens that offers additional rates over the public. This scheme is available till September 30, 2023. Elderlies under this special FD can earn an additional 1% rate compared to the normal rates offered by the bank to the public.

SBI launched the Deposit Scheme "SBI WECARE' to protect the income of senior citizens by offering additional interest on Term Deposits. It was introduced in 2020.

On its website, SBI said, "Additional premium of 50 bps (over and above existing premium of 50 bps) over card rate for Public i.e., 100 bps over card rate for Public."

This means that senior citizens can earn up to 1% additional interest rates on FDs compared to others under this special FD.

The minimum tenure for SBI WeCare is 5 years and can go up to a maximum of 10 years.

The payment of interest is carried as:

- Term Deposit - At monthly/ quarterly interval

- Special Term Deposit- On maturity interest, net of TDS, shall be credited to the customer account.

Notably, tax deducted at source (TDS) is the applicable rate as per the Income Tax Act. The scheme is also available for the loan facility.

The scheme is available on fresh deposits and renewal of maturing deposits. SBI WeCare's special FD scheme for senior citizens will end on September 30.

Currently, SBI is offering a 7.10% rate to the general public and 7.60% to senior citizens under a specific tenure scheme of "400 days" (Amrit Kalash) which will be valid till December 31, 2023. Under this specific tenure FD, an additional premium of 50 bps under the" SBI We-care" deposit scheme, is included.

The last time SBI revised its FD rates for deposits below Rs 2 crore was in February 2023.

Since then, SBI has been offering 7.50% to senior citizens for 2 years to less than 3 years, and 5 years and up to 10 years tenures. While the rate is 7.30% on 1 Year to less than 2 years, and 7% on 3 years to less than 5 years maturities. Further, the elderlies can earn up to 6.25% on 211 days to less than 1 year, 5.75% on 180 days to 210 days, 5% on 46 days to 179 days, and 3.50% on 7 days to 45 days.

These FD rates are higher compared to the interest rates in the range of 3% to 6.50% offered to the general public.